Autumn Statement a mixed bag for rural communities, FUW says

The Autumn Statement delivered by Chancellor Philip Hammond today has been described as a mixed bag for rural communities by the Farmers’ Union of Wales.

As part of the budget the announcement the Chancellor confirmed that the income tax threshold is to be raised to £11,500 in April, from £11,000 now and the National Living Wage is to rise from £7.20 an hour to £7.50 from April next year.

FUW Director of Finance, David Parker said: “This budget is a bit of a mixed bag for our rural communities. Raising the earnings threshold for tax and increasing the National Living Wage will come as welcome news to those on low incomes, especially in our rural communities. However, a rise in wages may not be so welcome by employers, especially as farm incomes are at an all time low.”

The Union, cautiously welcomed that the fuel duty rise has been cancelled, saving the average car driver £130 and van drivers £350 a year, but stressed that more should be done to help those in rural areas cope with high fuel costs.

FUW President Glyn Roberts said: “The FUW believes the rate of fuel duty needs to be significantly reduced to bring down the overall cost of fuel and with that the cost of living. Yes it is welcome news that there will not be an increase in fuel duty but really what should have happened is a cut in fuel duty.

“The high cost of fuel, including red diesel, has a serious impact on agriculture and the wider rural economy. Many households in rural Wales rely on a car due to the fragmented public transport service and the distance from suppliers and markets means rural businesses are disproportionately affected by high fuel prices. There is also less competition between fuel suppliers and many people living in rural towns and villages are facing higher prices at the pump.”

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